Volvo 2003 Annual Report Download - page 80

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78
Parent Company AB Volvo
Notes to financial statements
Note 12 Other short-term receivables
2001 2002 2003
Income tax receivables 258 – –
Accounts receivable 27 45 16
Prepaid expenses and accrued income 52 48 48
Other receivables 187 157 21
Total 524 250 85
The valuation allowance for doubtful receivables amounted to 7 (5; 5) at the end of the year.
Note 16 Other provisions
Other provisions comprise provisions for taxes in the amount of 21 (21; 24).
Note 13 Short-term investments in Group companies
Short-term investments in Group companies comprise deposits of 924 (9,045; 17,873) in Volvo Treasury.
Note 14 Untaxed reserves
Value in Value in Value in
The composition of, and changes in, balance sheet Allocations balance sheet Allocations balance sheet
untaxed reserves: 2001 2002 2002 2003 2003
Tax allocation reserve 1,525 – 1,525 – 1,525
Accumulated additional depreciation
Land 3 – 3 – 3
Total 1,528 – 1,528 – 1,528
Note 15 Provisions for pensions
Provisions for pensions and similar benefits correspond to the actu-
arially calculated value of obligations not insured with third parties
or secured through transfers of funds to pension foundations. The
amount of pensions falling due within one year is included. AB Volvo
has insured the pension obligations with third parties. Of the amount
reported, 42 (60; 10) pertains to contractual obligations within the
framework of the PRI (Pension Registration Institute) system.
In 1996, two Groupwide pension foundations for employees were
formed to secure commitments in accordance with the ITP plan. The
Volvo 1995 Pension Foundation pertained to pension funds earned
through 1995 and the Volvo 1996 Pension Foundation pertained to
funds earned beginning in 1996. During 2000 these two founda-
tions merged into one foundation. No pension funds have been
transferred from AB Volvo to the Volvo Pension Foundation and no
withdrawals have been made.
AB Volvo’s pension costs in 2003 amounted to 85 (168; 93).
The accumulated benefit obligation of all AB Volvo’s pension
obligations at year-end 2003 amounted to 804, which has been
secured in part through provisions for pensions and in part through
funds in pension foundations. Net asset value in the Pension
Foundation, marked to market, accruing to AB Volvo was 42 lower
than corresponding pension obligations. A provision was recorded to
cover this deficit.